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Boeing stock drops on warning about defect on 787 Dreamliner planes

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Shares of Boeing Co. dropped 2% in midday trading Tuesday after the aerospace and defense company said it found new problems with its 787 Dreamliner jets.

The defect, which is not a flight safety concern, is connected with a stabilizer fitting, and will lead the company to inspect every plane in inventory before delivery, Boeing
BA,
-0.71%

said.

The inspections and required rework will affect timing of near-term 787 deliveries, but “at this time we do not expect that this issue will change our full-year guidance regarding 787 deliveries,” the company said.

At the time it reported first-quarter earnings in April, Boeing said its 787 program was producing at least three jets a month “with plans to ramp production to five per month in late 2023” and on to 10 a month by 2025-26.

In-service fleet may continue to operate, and the FAA and customers have been informed, Boeing said.

Dreamliner deliveries were halted in February after a documentation and data-analysis error, and the FAA had cleared the jets’ deliveries in March.

Boeing in April identified a problem with another jet family, the 737 Max, related to fittings.

Shares of Boeing have gained around 9% so far this year, compared with gains of about 11% for the S&P 500 index.
SPX,
+0.24%

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